Wednesday, June 19, 2013

Client's Offer in Compromise progressing well...

Our office is currently completing an Offer In Compromise (OIC) for one of my clients.  After months of consultation with the IRS, the client and I appear to be making progress with helping my client attain some needed and warranted tax relief. 

The IRS is very stringent on who they will allow this type of relief.  If you have a decent income that will usually diminish the possibility of obtaining an OIC.  However, if you have a tax debt that doesn't leave many options this may be an answer.

June 24, 2013 UPDATE.  The above mentioned OIC was accepted by the IRS.  The offer my client selected amounted to about $.14 cents on the dollar. 

Tuesday, June 11, 2013

GAAP for Small and Medium Businesses


The AICPA on Monday launched the Financial Reporting Framework for Small- and Medium-Sized Entities, a new option for small business financial reporting.
Designed to help smaller, privately held, owner-managed businesses, the FRF for SMEs accounting option is intended for businesses that do not need to prepare GAAP-compliant financial statements. The framework was built to help owner-managed businesses provide relevant, streamlined reporting for users of their financial statements.
The framework complements the efforts of the Financial Accounting Foundation (FAF) to create exceptions and modifications to GAAP through the recently formed Private Company Council (PCC). The AICPA said in a news release that it fully supports the efforts of FAF, FASB and the PCC to address the private company environment through changes in GAAP.

The FRF for SMEs is meant to help small businesses prepare financial statements that clearly and concisely report what a business owns, what it owes, and its cash flow. The framework focuses on delivering financial statements that are robust but relevant and avoid  unnecessary complexity and cost.
Key measures of a business and its creditworthiness that will be reported in financial statements prepared under the framework will include profitability, cash available, and assets to cover expenses. The FRF for SMEs uses historical cost as a primary measurement basis, steering away from potentially expensive fair value measurements.